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Chiloquin gym finished after delays; district withholds $42,000 in liquidated damages and tightens contractor safeguards
Summary
The committee heard that the Chiloquin gym reached usable completion after delays and punch-list work; the district withheld $42,000 for missed deadlines and said it raised liquidated damages and added bid safeguards for future projects, and approved an emergency $948,000 Henley fire-suppression upgrade.
District staff told the committee the Chiloquin gym project encountered completion delays and quality issues that led to withheld payments and process changes.
"We actually ran into it not being fully finished when we needed the date to be done...42,000 is being held back for liquidated damages," the presenter said, describing accruals at roughly $1,000 per day while the project missed its deadlines. The presenter listed unfinished items (a trophy case not ordered or delivered, floor flaws, and electrical items) that were later addressed and said the architect completed needed warranty and O&M documentation.
The district said it will apply stronger procurement safeguards going forward: bidders that perform unsatisfactorily can be rejected and the district has raised liquidated damages for future contracts to $2,500 per day.
Separately, staff reported an emergency Henley fire-suppression project. The presenter said the board approved about $948,000 to bring Henley's suppression system up to code after the district could no longer use a geothermal-fed reservoir; the work will require new reservoir/tank solutions and compliance with fire code.
Why it matters: Withholding funds and imposing higher liquidated damages protects taxpayers when contractors miss contractual deadlines. The Henley safety project is code-driven and requires immediate capital outlay.
Next steps: staff will continue oversight of the Chiloquin project close-out, pursue eligible reimbursements where appropriate and proceed with the Henley fire-suppression work already approved by the board.
